Accounting Policies of TECIL Chemicals & Hydro Power Ltd. Company

Mar 31, 2025

SIGNIFICANT ACCOUNTING POLICIES:

a) Basis of Preparation of Financial Statements: -

Forall periods up to and including the year ended March 31, 2017, the Company prepared its financial statements
in accordance with Generally Accepted Accounting Principles (GAAP) in India and complied with the accounting
standards (Previous GAAP) as notified under Section 133 of the Companies Act, 2013 read together with Rule 7
of the Companies (Accounts) Rules, 2014, as amended, to the extent applicable, and the presentation
requirements of the Companies Act, 2013.

With effect from April 1, 2017, the company is required to prepare its financial statements in accordance with the
notification dated February 16,2015, issued by the Ministry of Corporate Affairs. The Company has to adopt Indian
Accounting Standards (Ind AS) notified under Section 133 read with Rule 4A of Companies (Indian Accounting
Standards) Rules, 2015 as amended, and the relevant provisions of the Companies Act, 2013 (collectively, "Ind
ASs"). Company has prepared its financial statements for the period ended 31st March 2018 in accordance with
Ind AS, the first financial statement that company has prepared in accordance with Ind AS. The Company continue
to prepare its financial statements from the year ended March 31, 2018 till the current year ended March 31,
2025 in accordance with Ind AS.

b) Revenue and Expenditure Recognition: -

Revenue is recognized and expenditure is accounted for on accrual basis.

c) Property, Plant and equipment: -

The Company has applied Ind AS 16 with retrospective effect for all of its property, plant and equipment as at the
transition date, viz., 01^st April 2016. Fixed Assets are stated at cost as increased by revaluation in case of land,
building, etc and less accumulated depreciation thereon in respect of assets acquired up to 31.03.1995. Fixed
assets were revalued as on 31.03.1995.

d) Depreciation: -

Depreciation on fixed asset (including revalued assets) has been provided based on life assigned to each asset in
accordance with Schedule II of the Companies Act 2013.

Deprecation on Residential Building, Furniture and Fittings, Motor vehicles, etc and addition to and deduction
from such assets are provided for on pro-rata basis from/ up to the month of addition/ deduction.

Additional depreciation representing the difference between depreciation on revalued amount and original cost
of the assets like Land and Buildings has been withdrawn from revaluation reserve.

e) Foreign Exchange Transactions/Translation

The company has no foreign exchange transactions during the current year.

f) Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand. For the purpose of the
statement of cash flows, cash and cash equivalents consist of cash as defined above.

g) Investments: -

Long Term Investments made by the Company in shares are valued as per the Accounting Standards issued by
The Institute of Chartered Accountants of India. Provision has been made for permanent diminution in the value
of Long-Term Investments.

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Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES:

a) Basis of Preparation of Financial Statements: -

For all periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) in India and complied with the accounting standards (Previous GAAP) as notified under Section 133 of the Companies Act, 2013 read together with Rule 7 of the Companies (Accounts) Rules, 2014, as amended, to the extent applicable, and the presentation requirements of the Companies Act, 2013.

With effect from April 1, 2017, the company is required to prepare its financial statements in accordance with the notification dated February 16, 2015, issued by the Ministry of Corporate Affairs. The Company has to adopt Indian Accounting Standards (Ind AS) notified under Section 133 read with Rule 4A of Companies (Indian Accounting Standards) Rules, 2015 as amended, and the relevant provisions of the Companies Act, 2013 (collectively, "Ind ASs"). Company has prepared its financial statements for the period ended 31st March 2018 in accordance with Ind AS, the first financial statement that company has prepared in accordance with Ind AS. The Company continue to prepare its financial statements from the year ended March 31, 2018 till the current year ended March 31, 2024 in accordance with Ind AS.

b) Revenue and Expenditure Recognition: -

Revenue is recognized and expenditure is accounted for on accrual basis.

c) Property, Plant and equipment: -

The Company has applied Ind AS 16 with retrospective effect for all of its property, plant and equipment as at the transition date, viz., 01^st April 2016. Fixed Assets are stated at cost as increased by revaluation in case of land, building, etc and less accumulated depreciation thereon in respect of assets acquired up to 31.03.1995. Fixed assets were revalued as on 31.03.1995.

d) Depreciation: -

Depreciation on fixed asset (including revalued assets) has been provided based on life assigned to each asset in accordance with Schedule II of the Companies Act 2013.

Deprecation on Residential Building, Furniture and Fittings, Motor vehicles, etc and addition to and deduction from such assets are provided for on pro-rata basis from/ up to the month of addition/ deduction.

Additional depreciation representing the difference between depreciation on revalued amount and original cost of the assets like Land and Buildings has been withdrawn from revaluation reserve.

e) Foreign Exchange Transactions/Translation

The company has no foreign exchange transactions during the current year.

f) Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash as defined above.

g) Investments: -

Long Term Investments made by the Company in shares are valued as per the Accounting Standards issued by The Institute of Chartered Accountants of India. Provision has been made for permanent diminution in the value of Long-Term Investments.

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Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES:

a) Basis of Preparation of Financial Statements:-

For all periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) in India and complied with the accounting standards (Previous GAAP) as notified under Section 133 of the Companies Act, 2013 read together with Rule 7 of the Companies (Accounts) Rules, 2014, as amended, to the extent applicable, and the presentation requirements of the Companies Act, 2013.

With effect from April 1, 2017, the company is required to prepare its financial statements in accordance with the notification dated February 16, 2015, issued by the Ministry of Corporate Affairs. The Company has to adopt Indian Accounting Standards (Ind AS) notified under Section 133 read with Rule 4A of Companies (Indian Accounting Standards) Rules, 2015 as amended, and the relevant provisions of the Companies Act, 2013 (collectively, "Ind ASs"). Company has prepared its financial statements for the period ended 31st March 2018 in accordance with Ind AS, the first financial statement that company has prepared in accordance with Ind AS. The Company continue to prepare its financial statements from the year ended March 31, 2018 till the current year ended March 31, 2023 in accordance with Ind AS.

b) Revenue and Expenditure Recognition:-

Revenue is recognized and expenditure is accounted for on accrual basis.

c) Property, Plant and equipment:-

The Company has applied Ind AS 16 with retrospective effect for all of its property, plant and equipment as at the transition date, viz., 1 April 2016. Fixed Assets are stated at cost as increased by revaluation in case of land, building, etc and less accumulated depreciation thereon in respect of assets acquired up to 31.03.1995. Fixed assets were revalued as on 31.03.1995.

d) Depreciation:-

Depreciation on fixed asset (including revalued assets) has been provided based on life assigned to each asset in accordance with Schedule II of the Companies Act 2013.

Deprecation on Residential Building, Furniture and Fittings, Motor vehicles, etc and addition to and deduction from such assets are provided for on pro-rata basis from/ up to the month of addition/ deduction.

Additional depreciation representing the difference between depreciation on revalued amount and original cost of the assets like Land and Buildings has been withdrawn from revaluation reserve.

e) Retirement Benefits:-

a) Employer''s Contributions to Provident Fund is charged as expenditure.

b) Gratuity payable to Employees is calculated as per provision of the Gratuity

Act and the difference, if any are provided in the books of accounts every year.

f) Investments:-

Long Term Investments made by the Company in shares are valued as per the Accounting Standards issued by The Institute of Chartered Accountants of India. Provision has been made for permanent diminution in the value of Long Term Investments.

g) Treatment of Contingent Liabilities:-

Contingent liabilities not provided for, are disclosed by way of Notes to Accounts with particulars of the nature and quantum, wherever possible, of such liabilities.

h) Segment Reporting:-

The Company has carried out no trading activity and hence there is no separate segment.

i) Earnings per Share:-

The Company presents basic earnings per share ("EPS") data for its equity shares. Basic EPS is calculated by dividing the profit and loss attributable to equity shareholders of the Company by the average number of equity shares outstanding during the period.

j) Accounting for taxes on Income:-

In view of the accumulated losses, the Management has not disclosed Income tax expense in its financial statements. Hence the accounting treatment of income tax as required under Ind AS 12 issued by ICAI is not applicable.

k) Cash Flow Statement

Cash flows are reported using indirect method as set out in Ind AS-7 "Statement of cash flows", whereby profit/ (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the company are segregated based on the available information.

L6. NOTES FORMING PART OF ACCOUNT:

1. Disputed liabilities not provided for:

Central Excise Refund

As per the order of the Asst. Commissioner of Central Excise, Kottayam Division, Kottayam dated 23.12.1998 holding that Calcium Carbide manufactured and used captive consumption in the manufacture of acetylene black within the factory is not liable for levy of excise duty, the company is entitled to a refund of excise duty of Rs.82,89,691/- in respect of the period from April, 1978 to July, 1983.

This was confirmed by the Hon''ble CEGET, New Delhi as per the order No.A/1076/02 NB (D) dated 24.10.2002. Based on the above order the company filed a refund claim for Rs.82,86,691/- before the Deputy Commissioner of Central Excise, Kottayam Division on 30.01.2003. However the Deputy Commissioner allowed only Rs.37,99,198/-as refund and the same was recognized as income in the Profit & Loss account in the year 2002-2003. The claim for the balance amount of Rs.44,86,993/- was rejected by the Excise authorities for want of proof payment of duty.

Against this order the company had filed an appeal before the Commissioner of Central Excise and Customs (Appeals) Cochin on 22-10-2003 and the appeal was disposed of in favour of the Company.

The Department has gone in Appeal. In view of the above, the claim for the refund of the balance amount of Rs. 44,86,993/- has not been recognized in the accounts. Company has also filed appeal before CEGAT, New Delhi for release of balance amount, which is pending for disposal.

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Mar 31, 2015

A) Basis of Preparation of Financial Statements: -

The accompanying financial statements for the fiscal period have been prepared under historical cost convention, in compliance with Indian Generally Accepted Accounting Principles ("GAAP") with mandatory and relevant Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI)and referred to Section 129 to 133 of the Companies Act 2013 of India. The accounting policies applied by the Company are consistent with those used in previous year.

b) Revenue and Expenditure Recognition: -

Revenue is recognized and expenditure is accounted for on accrual basis.

c) Fixed Assets:-

Fixed Assets are stated at cost as increased by revaluation in case of land, building and Plant and Machinery less accumulated depreciation thereon in respect of assets acquired up to 31.03.1995. Fixed assets were revalued as on 31.03.1995.

d) Depreciation:-

Depreciation on fixed assets (including revalued assets) has been provided based on life assigned to each asset in accordance with Schedule II of the Companies Act 2013.

Depreciation on Residential Building, Furniture and Fittings, Motor vehicles, etc and addition to and deduction from such assets are provided for on pro-rata basis from/up to the month of addition/deduction.

Additional depreciation representing the difference between depreciation on revalued amount and original cost of the assets like Land has been withdrawn from revaluation reserve.

e) Retirement benefits: -

Employer's Contributions to Provident Fund and gratuity are charged as expenditure.

f) Investments: -

Long Term Investments made by the Company in shares are valued as per the Accounting Standards issued by The Institute of Chartered Accountants of India. Provision has been made for permanent diminution in the value of Long Term investments.

g) Inventories: -

Inventories are valued at lower of cost or estimated net realizable value as certified by the Managing Director of the company. Cost of inventories is computed on a weighted average basis. The value of finished goods and work in progress include cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Proceeds in respect of sale of raw materials or stores will be credited to the respective heads. The closing stock of scrap, waste products such as lime sludge are not valued and shown in the balance sheet as in the opinion of the management these items do not have a ready market.

h) Treatment of contingent Liabilities: -

Contingent liabilities not provided for, are disclosed by way of Notes to accounts with particulars of the nature and quantum, wherever possible, of such liabilities.

i) Segment Reporting:-

The Company has carried out no trading activity and hence there is no separate segment as per AS-17 issued by ICAI.

j) Earnings per Share:-

The Company reports basic earning per share in accordance with AS-20 for "Earnings per Share" issued by the ICAI. Basic earning per share has been computed by dividing net profit by the weighted average number of equity shares outstanding forthe year.

k) Accounting fortaxes on Income: -

Income tax expense is recognized in accordance with AS-22- "Accounting for Taxes on Income" which includes current taxes and deferred taxes.

Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income forthe year and reversal of timing differences of earlieryears.

Deferred Tax assets are not recognized in the absence of reasonable/virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

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Mar 31, 2014

A) Basis of Preparation of Financial Statements: -

The accompanying financial statements for the fiscal period have been prepared under historical cost convention, in compliance with Indian Generally Accepted Accounting Principles ("GAAP") with mandatory and relevant Accounting ? Standards issued by the Institute of Chartered Accountants of India (ICAI) and in compliance with the provisions of Companies Act, 1956.

b) Revenue and Expenditure Recognition: -

Revenue is recognized and expenditure is accounted for on accrual basis.

c) Fixed Assets: -

Fixed Assets are stated at cost as increased by revaluation in case of land, building and Plant and Machinery less accumulated depreciation thereon in respect of assets acquired up to 31.03.1995. Fixed assets were revalued as on 31.03.1995.

d) Depreciation: -

Depreciation on fixed assets (including revalued assets) was used to provide at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956 to the extent specified in Section 205(2)(a) as per written down value method.

Depreciation on Residential Building, Furniture and Fittings, Motor vehicles, etc and addition to and deduction from such assets are provided for on pro-rata basis from/up to" the month of addition / deduction.

Additional depreciation representing the difference between depreciation on revalued amount and original cost of the assets like Land has been withdrawn from revaluation reserve.

e) Retirement benefits: -

Employer''s Contributions to Provident Fund and gratuity are charged as expenditure.

f) Investments: -

Long Term Investments made by the Company in shares are valued as per the Accounting Standards issued by The Institute of Chartered Accountants of India. Provision has been made for permanent diminution in the value of Long Term investments.

g) Inventories: -

Inventories are valued at lower of cost or estimated net realizable value as certified by the Managing Director of the Company. Cost of inventories is computed on a weighted average basis. The value of finished goods and work in progress include cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Proceeds in respect of sale of raw materials or stores will be credited to the respective heads. The closing stock of scrap, waste products such as lime sludge are not valued and shown in the balance sheet as in the opinion of the management these items do not have a ready market.

h) Sales: -

Sales include recovery of Excise Duty, Sales tax and shown net of the adjustment against transporting and forwarding expenses incurred.

i) Excise Duty: -

Excise duty on finished goods is accounted for at the time of clearance of goods.

j) Treatment of contingent Liabilities: -

Contingent liabilities not provided for, are disclosed by way of Notes to accounts with particulars of the nature and quantum, wherever possible, of such liabilities.

k) Segment Reporting: -

The Company has carried out no trading activity and hence there is no separate segment as per AS-17 issued by ICAI.

Earnings per Share: -

The Company reports basic earning per share in accordance with AS-20 for "Earnings per Share" issued by the ICAI. Basic earning per share has been computed by dividing net profit by the weighted average number of equity shares outstanding for the year.

Accounting for taxes on Income: -

Income tax expense is recognized in accordance with AS-22- "Accounting for Taxes on Income" which includes current taxes and deferred taxes.

Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax assets are not recognised in the absence of reasonable/virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

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Mar 31, 2013

A) Basis of Preparation of Financial Statements: -

The accompanying financial statements for the fiscal period have been prepared under historical cost convention, in compliance with Indian Generally Accepted Accounting Principles ("GAAP") with mandatory and relevant Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and in compliance with the provisions of Companies Act, 1956.

b) Revenueand Expenditure Recognition: -

Revenue is recognized and expenditure is accounted for on accrual basis.

c) Fixed Assets: -

Fixed Assets are stated at cost as increased by revaluation in case of land, building and Plant and Machinery less accumulated depreciation thereon in respect of assets acquired up to 31.03.1995. Fixed assets were revalued as on 31.03.1995.

d) Depreciation: -

Depreciation on fixed assets (including revalued assets) was used to provide at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956 to the extent specified in section 205(2)(a) as per written down value method.

Depreciation on Residential Building, Furniture and Fittings, Motor vehicles, etc and addition to and deduction from such assets are provided for on pro-rata basis from/up to the month of addition / deduction. Additional depreciation representing the difference between depreciation on revalued amount and original cost of the assets like Land has been withdrawn from revaluation reserve.

e) Retirement benefits:-

Employer''s Contributions to Provident Fund and gratuity are charged as expenditure.

f) Investments: -

Long Term Investments made by the Company in shares are valued as per the Accounting Standards issued by The Institute of Chartered Accountants of India. Provision has been made for permanent diminution in the value of Long Term investments.

g) Inventories: -

Inventories are valued at lower of cost or estimated net realizable value as certified by the Managing Director of the company. Cost of inventories is computed on a weighted average basis. The value of finished goods and work in progress include cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Proceeds in respect of sale of raw materials or stores will be credited to the respective heads. The closing stock of scrap, waste products such as lime sludge are not valued and shown in the balance sheet as in the '' opinion of the management these items do not have a ready market. h) Sales:-

Sales include recovery of Excise Duty, Sales tax and shown net of the adjustment against transporting and forwarding expenses incurred.

i) Excise Duty:-

Excise duty on finished goods is accounted for at the time of clearance of goods.

j) Treatment of contingent Liabilities:-

Contingent liabilities not provided for, are disclosed by way of Notes to accounts with particulars of the nature and quantum, wherever possible, of such liabilities.

k) Segment Reporting:-

The Company has carried out no trading activity and hence there is no separate segment as per AS-17 issued by ICAI.

I) Earnings per Share: -

The Company reports basic earning per share in accordance with AS-20 for "Earnings per Share" issued by the ICAI. Basic earning per share has been computed by dividing net profit by the weighted average number of equity shares outstanding forthe year.

m) Accounting for taxes on Income:-

Income tax expense is recognized in accordance with AS-22- "Accounting for Taxes on Income" which includes current taxes and deferred taxes.

Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting incomefortheyearand reversal oftiming differences of earlieryears.

Deferred tax assets are not recognised in the absence of reasonable/virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.

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Mar 31, 2012

A) Basis of Preparation of Financial Statements:-

The accompanying financial statements for the fiscal period have been prepared under historical cost convention, in compliance with Indian Generally Accepted Accounting Principles ("GAAP") with mandatory and relevant Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and in compliance with the provisions of Companies Act, 1956.

b) Revenue and Expenditure Recognition: -

Revenue is recognized and expenditure is accounted for on accrual basis.

c) Fixed Assets: -

Fixed Assets are stated at cost as increased by revaluation in case of land, building and Plant and Machinery less accumulated depreciation thereon in respect of assets acquired up to 31.03.1995. Fixed assets were revalued as on 31.03.1995. However, the Assets such as Plant and Machinery, Equipments and other old movable assets were disposed off during the year, leaving Land Residential Buildings, Furniture, Motor Car, etc.

d) Depreciation: -

Depreciation on fixed assets (including revalued assets) was used to provide at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956 to the extent specified in section 205(2)(b) as per straight line methods in respect of Plant and Machinery and in section 205(2))a) as per written down value method in respect of other assets. However, during the current year no depreciation has been provided for as there was no manufacturing activity, and, as the entire Plant and Machinery, Factory Plants, and all other old movable assets were disposed off during the year.

Depreciation on Residential Building, Furniture and Fittings, Motor vehicles, etc and addition to and deduction from such assets are provided for on pro-rata basis from/up to the month of addition / deduction.

Additional depreciation representing the difference between depreciation on revalued amount and original cost of the assets like Land has been withdrawn from revaluation reserve.

e) Retirement benefits: -

Employees Contributions to Provident Fund and gratuity are charged as expenditure.

f) Investments: -

Long Term Investments made by the Company in shares are valued as per the Accounting Standards issued by The Institute of Chartered Accountants of India. Provision has been made for permanent diminution in the value of Long Term investments.

g) Inventories: -

Inventories are valued at lower of cost or estimated net realizable value as certified by the Managing Director of the company. Cost of inventories is computed on a weighted average basis. The value of finished goods and work in progress include cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Proceeds in respect of sale of raw materials or stores will be credited to the respective heads. The closing stock of scrap, waste products such as lime sludge are not valued and shown in the balance sheet as in the opinion of the management these items do not have a ready market.

h) Sales: -

Sales include recovery of Excise Duty, Sales tax and shown net of the adjustment against transporting and forwarding expenses incurred.

i) Excise Duty: -

Excise duty on finished goods is accounted for at the time of clearance of goods.

j) Treatment of contingent Liabilities:-

Contingent liabilities not provided for, are disclosed by way of Notes to accounts with particulars of the nature and quantum, wherever possible, of such liabilities,

k) Segment Reporting:-

The Company has carried out no trading activity and hence there is no separate segment as perAS-17 issued by ICAI.

I) Earnings per Share:-

The Company reports basic earnings per share in accordance with AS-20 for "Earnings per Share" issued by the ICAI. Basic earnings per share has been computed by dividing net profit by the weighted average number of equity shares outstanding for the year.

m) Accounting for taxes on Income: -

Income tax expense is recognized in accordance with AS-22- "Accounting for Taxes on Income" which includes current taxes and deferred taxes.

Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax assets are not recognized in the absence of reasonable/virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

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Mar 31, 2011

A) Basis of Preparation of Financial Statements: -

The accompanying financial statements for the fiscal period have been prepared under historical cost convention ,in compliance with Indian Generally Accepted Accounting Principles ("GAAP") with mandatory and relevant Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and in compliance with the provisions of Companies Act, 1956.

b) Revenue and Expenditure Recognition: -

Revenue is recognized and expenditure is accounted for on accrual basis.

c) Fixed Assets: -

Fixed Assets are stated at cost as increased by revaluation in case of land, building and Plant and Machinery less accumulated depreciation thereon in respect of assets acquired up to 31/03/95. Fixed assets were revalued as on 31.3.95.

d) Depreciation: -

Depreciation on fixed assets (including revalued assets) is provided for at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956, to the extent specified in section 205(2)(b) as per straight line method in respect of Plant and Machinery and in section 205(2)(a) as per written down value method in respect of other assets. Additional depreciation representing the difference between depreciation on revalued amount and original cost of the assets has been withdrawn from revaluation reserve.

Depreciation on addition to and deduction from fixed assets is provided for on pro-rata basis from/up to the month of addition/deduction.

During the year there was no manufacturing activity, hence no depreciation has been provided to the extent of Rs. 1,00,65,805/- (Nil) on machineries not put to use.

e) Retirement benefits:-

Employer's Contributions to Provident Fund and gratuity are charged as expenditure.

f) Investments: -

Long Term Investments made by the Company in shares are valued as per the Accounting Standards issued by The Institute of Chartered Accountants of India. Provision has been made for permanent diminution in the value of Long Term investments.

g) Inventories:-

Inventories are valued at lower of cost or estimated net realisable value as certified by the Managing Director of the company. Cost of inventories is computed on a weighted average basis. The value of finished goods and work in progress include cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Proceeds in respect of sale of raw materials or stores will be credited to the respective heads. The closing stock of scrap, waste products such as lime sludge are not valued and shown in the balance sheet as in the opinion of the management these items do not have a ready market.

h) Sales:

Sales include recovery of Excise Duty, Sales tax and shown net of the adjustment against transporting and forwarding expenses incurred.

i) Excise Duty: -

Excise duty on finished goods is accounted for at the time of clearance of goods.

j) Treatment of contingent Liabilities: -

Contingent liabilities not provided for, are disclosed by way of Notes to accounts with particulars of the nature and quantum, wherever possible, of such liabilities.

k) Segment Reporting: -

The Company has carried out no trading activity and hence there is no separate segment as per AS-17 issued by ICAI.

l) Earnings per Share: -

The Company reports basic earning per share in accordance with AS-20 for "Earnings per Share" issued by the ICAI. Basic earning per share has been computed by dividing net profit by the weighted average number of equity shares outstanding for the year.

m) Accounting for taxes on Income: -

Income tax expense is recognized in accordance with AS-22- "Accounting for Taxes on Income" which includes current taxes and deferred taxes.

Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax assets are not recognised in the absence of reasonable/virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.

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Mar 31, 2010

A) Basis of Preparation of Financial Statements :-

The accompanying financial statements for the fiscal period have been prepared under historical cost convention, in compliance with Indian Generally Accepted Accounting Principles (“GAAP”) with mandatory and relevant Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and in compliance with the provisions of Companies Act, 1956.

b) Revenue and Expenditure Recognition :-

Revenue is recognized and expenditure is accounted for on accrual basis.

c) Fixed Assets :-

Fixed Assets are stated at cost as increased by revaluation in case of land, building and Plant and Machinery less accumulated depreciation thereon in respect of assets acquired up to 31/03/95. Fixed assets were revalued as on 31.3.95.

d) Depreciation :-

Depreciation on fixed assets (including revalued assets) is provided for at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956, to the extent specified in section 205(2)(b) as per straight line method in respect of Plant and Machinery and in section 205(2)(a) as per written down value method in respect of other assets.

Additional depreciation representing the difference between depreciation on revalued amount and original cost of the assets has been withdrawn from revaluation reserve.

Depreciation on addition to and deduction from fixed assets is provided for on pro-rata basis from/up to the month of addition / deduction.

During the year there was no manufacturing activity, hence no depreciation has been provided to the extent of Rs.1,00,65,805/- (Nil) on machineries not put to use.

e) Retirement benefits :-

Employers Contributions to Provident Fund and gratuity are charged as expenditure.

f) Investments :-

Long Term Investments made by the Company in shares are valued as per the Accounting Standards issued by The Institute of Chartered Accountants of India. Provision has been made for permanent diminution in the value of Long Term investments.

g) Inventories :-

Inventories are valued at lower of cost or estimated net realisable value as certified by the Managing Director of the company. Cost of inventories is computed on a weighted average basis. The value of finished goods and work in progress include cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Proceeds in respect of sale of raw materials or stores will be credited to the respective heads. The closing stock of scrap, waste products such as lime sludge are not valued and shown in the balance sheet as in the opinion of the management these items do not have a ready market.

h) Sales :-

Sales include recovery of Excise Duty, Sales tax and shown net of the adjustment against transporting and forwarding expenses incurred.

i) Excise Duty :-

Excise duty on finished goods is accounted for at the time of clearance of goods.

j) Treatment of contingent Liabilities :-

Contingent liabilities not provided for, are disclosed by way of Notes to accounts with particulars of the nature and quantum, wherever possible, of such liabilities.

k) Segment Reporting : -

The Company has carried out no trading activity and hence there is no separate segment as per AS-17 issued by ICAI.

l) Earnings per Share :-

The Company reports basic earning per share in accordance with AS-20 for “Earnings per Share” issued by the ICAI. Basic earning per share has been computed by dividing net profit by the weighted average number of equity shares outstanding for the year.

m) Accounting for taxes on Income : -

Income tax expense is recognized in accordance with AS-22- “Accounting for Taxes on Income” which includes current taxes and deferred taxes.

Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax assets are not recognised in the absence of reasonable/virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.